The Moroccan government has published draft legislation to revamp the Insurance Code to ease conditions for operating an insurance company and introduce new products such as insurance for natural catastrophes, terrorism, and riots. The amendments aim to address gaps in the existing insurance law and provide for changes in insurance operations since the enactment of the Insurance Code in November 2002.
Among several provisions, the draft new insurance law aims to give new impetus to distribution by clarifying the rights and obligations of the various stakeholders including agents and brokers, and addressing new distribution channels, reported the Morocco Today news website.
For instance, the registered capital shall be at least MAD500,000 (US$49,367) for dealers and MAD100,000 insurance agents. In addition, insurance agents will no longer have to take a professional examination. However, a committee will be created by the new Insurance and Social Welfare Regulatory Authority which will list the qualifications required of an insurance agent.
The draft law also provides for banks to distribute health insurance, assistance and credit insurance, comprehensive household insurance and insurance related to credit cards. The amendments will also cover direct insurance sales.
The Moroccan government wants to develop sustainable compensation schemes for natural disasters, terrorism and riots. Through a separate Bill, the government has proposed a mixed system of compensation for victims of catastrophes, combining a system for those who buy disaster insurance and a scheme for those without such cover. Morocco is exposed to natural hazards such as floods, drought and earthquakes.
To this end, a catastrophe monitoring committee will be formed to declare a catastrophic event. This will include an expert committee to assess property damage.
A solidarity fund will be established to provide financial assistance to help Moroccans buy compulsory disaster insurance. Rules for compensations will be formulated.
MAD1 = US$0.10